Standard Drilling Secures Financing
Standard Drilling ASA has signed a commitment letter with respect to a Senior Secured Credit Facility for financing of two rigs (rig no. 1 & 3), each US $60 million, in total US $120 million. The company is in discussion with the Bank for financing of the two last rigs. Arranger of the loan is Nordea Bank Norge ASA, and the facility has a tenor of 5 years after the closing date and an interest-rate of Libor +140 bps.
Standard Drilling ASA has also decided to issue a new bond, and Pareto Securities ASA has been given the mandate as arranger for the new bond, which is guaranteed by a guarantee consortium. The loan amount is US $60 million. The bond will carry a coupon of 10.50 per cent p.a., and be secured by a second priority mortgage in the second rig to be constructed at Labroy Offshore Ltd. in Indonesia, with expected delivery in April 2009. Settlement date is expected to be January 10, 2007, and the bond will mature in 2011.
The Board of Standard Drilling is pleased with both the Bank financing for rig 1 & 3 and the bond financing of rig 2. This financing and the LOI with UMW for purchase of 51% of rig 1 and rig 3 will provide the necessary financing for the four building contracts at Labroy Offshore Ltd until end 2007.
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